USDC AWARDS CONTRACT TO APPLIED PHOTONICS

SAN JOSE, Calif., December 2, 2004 - Applied Photonics, a Scottsdale, AZ-based technology firm, has been awarded a contract by the U.S. Display Consortium (USDC) to develop an advanced laser separation system to be used in the manufacture of electronic displays. The $416K cost-shared project will focus on implementing laser cutting as a cleaner and more precise method of separating (or “singulating”) multiple displays manufactured on one large substrate.

The traditional separation method is to use a diamond-embedded cutting wheel to scribe the glass surface and then mechanically fracture the glass along the scribe line, a process that produces unwanted fractures in the glass and generates unwanted particles. Laser cutting, in contrast, has been demonstrated to produce a smooth, finished edge to the glass substrate, but has not been pursued for volume manufacturing until this project. The project will also explore processes for separating displays manufactured on conformable substrates, such as plastic, metal foil or stainless steel. Use of these materials is expected to produce displays more rugged and useful in portable applications such as battlefield communications, and is currently being evaluated under several other USDC technical projects.

"Congratulations to Applied Photonics for this award from the USDC," said Rep. J.D. Hayworth (R-AZ). "This is the latest example of Arizona's key role in helping America apply the newest scientific and technological advances to our goals of national security and peace."

Applied Photonics will make use of two existing USDC scribing and separation machines developed under a previous contract. The company will reconfigure and upgrade these tools and determine the applicability of laser cutting for newer materials. Applied Photonics will then optimize the process and conduct research on yield improvement and on in-situ monitoring and control.

The USDC R&D program is a collaborative effort of private industry and the U.S. Army Research Laboratory, located in Adelphi, MD.

The USDC is an industry-led public/private partnership providing a common platform for flat panel display manufacturers and developers, FPD users, and the supplier base. Headquartered in San Jose, Calif., the consortium’s primary mission is to fund supply-chain projects and share the results with USDC member companies. The USDC also provides a communication channel among industry, government and the financial communities for display issues; sponsors workshops to broaden the impact of technological developments; and educates consumers on the importance of displays in providing access to information technology.

Contact:

Heidi Hoffman
USDC
408.993.8111
heidi@usdc.org

About the U.S. Display Consortium
The U.S. Display Consortium is an industry-led public/private partnership providing a common platform for flat panel display and flexible microelectronics manufacturers and developers, FPD users, and the supplier base. Headquartered in San Jose, Calif., the consortium’s primary mission is to fund supply-chain projects and share the results with USDC member companies. The USDC also provides a communication channel among industry, government and the financial communities for display issues; sponsors workshops to broaden the impact of technological developments; and educates consumers on the importance of displays in providing access to information technology. More information about the USDC can be found at www.usdc.org

About Applied Photonics Inc.
Applied Photonics, Inc. is a leading provider of laser-based solutions to the semiconductor and flat panel display industries. The Company has in-depth understanding of how lasers interact with electronic and optical materials, and as a result are pursuing a number of semiconductor and flat panel display applications.  Core competencies include lasers, optics, materials processing, design engineering, and precision motion control. For more information, visit the Applied Photonics website at www.appliedphotonics.com